Microsoft facing €497 million fine

THE EU ANTITRUST regulator is set to fine Microsoft more than €497 million for its anti-competitive behaviour over Windows XP.

The Wall Street Journal, quoting sources in the EU said that the announcement is likely to come tomorrow.

That figure is a lot lower than many thought, the EU is allowed to hit Microsoft for more than €3 billion.

But what is more critical for the Redmond Giant is that it is likely that Brussels will demand that Windows be separated from other bundled software.

This will mean that it will have to market a different product in Europe than it does in the US.

But there are signs that Microsoft is not planning to give up yet. It has been peddling details of its idea of a 'settlement' to anyone in Brussels who will listen.

When asked by the Journal what it thought of the EU's decision a spokesperson said that a fine would be unwarranted.

Horacio Gutierrez, Microsoft's European brief said: "We believe it's unprecedented and inappropriate for the commission to impose a fine on a company's US operations when those operations are already regulated by the US government and the conduct at issue has been permitted by both the US Department of Justice and a US court."

In other words if it is OK by the US law it has to be OK in Europe.

Apparently Microsoft is planning to try and delay the decision with an appeals process through the European courts that will take at least two to five years. Maybe Longhorn will be out by then. µ